Arena Is In Magic's Court Now

Talks Remain At An Impasse Until Team Owner Rich Devos Tells How Much He Will Spend.

October 1, 2000|By Dan Tracy and Gwyneth K. Shaw of The Sentinel Staff

For nearly three years, the Orlando Magic have talked openly of their desire for a new home court, sending civic leaders into a mad scramble seeking ways to get the NBA team what it wants.

But after countless closed-door meetings that spawned talk of a $600 million undertaking that could dramatically remake downtown as well as build a new arena, little progress has been made.

The seeming impasse has frustrated politicians who undoubtedly will be asked to spend tens of millions in tax dollars for the team owned by Amway billionaire Rich DeVos.

The biggest holdup appears to be coming from the Magic. So far, DeVos hasn't said just how much of his own money he intends to spend on a new arena.

Without that crucial bit of information, Orlando and Orange County officials say they cannot move forward.

"My position is one of watching and waiting -- but in a positive way," Orange County Chairman Mel Martinez said. "But I do not think there should be a blank check."

Added Orlando Mayor Glenda Hood: "Until I have a hard and fast proposal . . ., I'm not going to make any type of determination of what we'll be involved in."

The Magic intend to reveal their position but are awaiting the results of an $80,000 study trying to determine if there is a need for a convention center downtown, said Cari Coats, the franchise's vice president of business development.

In theory, the Magic's current building, the city-owned TD Waterhouse Centre, could be retrofitted into a convention hall to handle the meeting needs of downtown's growing list of hotels.

"Once we get that [the review], then we can settle things," Coats said.

The report, paid for by the city and county, is expected by the middle of October, she said.

It can't come soon enough for members of the City Council and County Commission, where current support for a new Magic home is tepid at best.

"We already have an arena, as far as I'm concerned," council member Patty Sheehan said. "It's a fine arena."

Said county commissioner Mary Johnson: "I wouldn't do it now [commit money to the Magic]. I need more details anyway."

Even so, there is little doubt that no one in either group wants to be remembered as the one in charge when the Magic left town for a better arena.

The Magic have not threatened to move, but have made it clear they do not expect to play in the Waterhouse Centre after the 2004 season, when the team's five-year lease expires.

The 11-year-old arena, Magic administrators say, is antiquated by NBA standards and does not offer the amenities necessary to raise enough money to compete in the increasingly expensive National Basketball Association. Mid-level suites, upscale in-house restaurants and clubs are the types of features the current arena lacks.

The team recently joined with the CNL Group, an Orlando-based real-estate investment company, in a bid to build a new arena, as well as reinvigorate downtown by buying and improving several distressed properties, including the Church Street Station entertainment complex.

CNL representatives would not discuss their intentions or how the project is faring. Sources, however, say CNL has reached agreements to purchase the Church Street Market adjacent to Church Street Station and the empty Jaymont block at the corner of Church Street and Orange Avenue.

The availability of Church Street Station, bought by British financier Joe Lewis last year for $11.5 million, is unknown. Church Street Station and the market have been losing customers and money in recent years. Jaymont, which covers 2.2 acres, has been for sale for years. CNL hopes to match a rebuilt and popular Church Street corridor with a new arena, which could be constructed a block west on the other side of Interstate 4.

That site, assembled by a North Carolina investment group, was slated to hold a $23 million office building occupied by Hughes Supply Inc. But in May, CNL chief Jim Seneff asked Hughes to move to a parcel to the northwest.

Hughes agreed, leading to speculation that the proposed arena was moving closer to becoming a reality. "Everybody has given" in the effort to make both projects work, Downtown Development Board director Tom Kohler said.

The arena site even is showing up on city maps of projects under way or on the downtown drawing board.

But Coats of the Magic says the team still hasn't settled on where a new arena could be built. The West Church Street site remains a possibility, as does another empty lot on Orange Avenue across from the Orange County Courthouse, she said.

No decision has been reached, Coats said, and "we are open to all options."

As for who might pay for the proposed building, Coats said DeVos is willing to put in money, although she would not divulge the amount.

"We're definitely going to bring something to the table," she said.

Hood said she is expecting "a very significant [financial] commitment" from the Magic.